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Home Buying and Selling Questions Answered by the

By DeLena Ciamacco on Nov 09, 2015

Q: Why should I buy instead of rent? A: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours - a home where your own personal style will tell the world who you are. Please note tax laws are constantly changing. Please ask your tax professional for a current list of deductible items/expenses.

Q: Should I use a real estate broker? How do I find one? A: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you establish the price range you can comfortably afford and search the classified ads and multiple listing services for homes you’ll want to see. With immediate access to homes as soon as they’re put on the market, a broker can save you hours of wasted driving-around time. When it’s time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the endless paperwork process, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don’t have to pay the broker anything! The payment comes from the home seller - not from the buyer. By the way, if you want to buy a HUD home, you are required to use a real estate broker to submit your bid.

Q: How much money will I have to come up with to buy a home? A: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover four costs: earnest money, the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; inspections and application fees; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house. When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000. The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That’s why many first-time home buyers turn to HUD’s FHA for help. FHA loans require very little down. Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won’t be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

DeLena Ciamacco’s Credentials “Top 100 Realtors In The World For Over 20 Years”* “#1 In The State Of Ohio For Over 18 Years” “#1 In Central Ohio 1994-2015 (ytd)”* “#1 Closed Dollar Volume 1994-2015 (ytd)”* *Among all Re/Max Team Leaders Worldwide

DeLena Ciamacco is Member Of: Columbus Board of Realtors National Association of Realtors Ohio Association of Realtors Builder Industry Association (BIA)

“I proudly specialize in Residential, Commercial, Land, and Investment Real Estate Sales. I service Franklin and all surrounding counties. I am available for any and all of your Real Estate needs!”

(614) 882-6725 • www.delena.com • delena@delena.com

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